Interest rates on an average 30-year fixed rate fell to 3.31 percent this week after dropping to 3.34 the week before, according to the secondary lender. A year ago the average 30-year fixed rate was just before 4 percent, at 3.98 percent, Freddie Mac said.

Average rates also dropped this week for 15-year fixed rate mortgages to 2.63 percent, Freddie Mac also reported. The rates had averaged at 2.65 percent the week before and were at 3.3 percent a year ago.

"Fixed mortgage rates continued to ease somewhat this week to record lows and should help the ongoing housing recovery," said Freddie Mac's chief economist Frank Nothaft. "Already, new construction on homes was up 3.6 percent in October to the strongest pace since July 2008."

Florida Attorney General Pam Bondi and 43 state attorneys general nationwide are calling on Congress to extend the Mortgage Debt Relief Act, which prevents homeowners from being taxed on the amount of money lenders forgive in a short sale or foreclosure.